Google closes On2 acquisition for $124.6 mn

MOUNTAIN VIEW, USA: Google Inc. today announced that it has completed its acquisition of On2 Technologies, Inc., valued at approximately $124.6 million, after On2's shareholders voted to approve the transaction.

"We're excited to welcome the On2 team to Google and to continue to enhance the video experience for users on the web," said Sundar Pichai, vice president of Product Management at Google.

He added that through rapid innovation in browsers and web standards, the Internet is becoming the leading platform for development. Google believes On2's engineering talent and technology will be an incredible asset for them as they work to improve this platform.

Under the terms of the agreement, each outstanding share of On2 common stock would be converted into the right to receive a combination of (a) $0.15 in cash per share, (b) 0.0010 of a share of Google Class A Common Stock and (c) cash payable in lieu of any fractional shares of Google Class A Common Stock.

Google intends to repurchase in the open market a number of shares equal to the number of shares issued in the transaction, the search giant said in a press release. The repurchase program is expected to commence shortly after the completion of the acquisition. The repurchases will be funded from available working capital, the release said.

Google had on Wednesday purchased Remail, a start-up which developed an e-mail search application for the iPhone.